The Enforcement Directorate (ED) has taken major action against the Ponzi scheme My Club Traders running in Kerala. ED’s Kochi zonal office has temporarily attached movable and immovable properties worth Rs 3.78 crore in this case. These properties were purchased with fraudulently earned money.
According to ED, this Ponzi scheme was being run by Muhammad Faisal, Abu Sufiyan and their associates. These people used to cheat innocent investors by luring them with high profits. The seized properties include agricultural land, residential houses, commercial land with office buildings and bank accounts in the name of the accused, people and companies associated with them.
1% daily profit scam
Investigation has revealed that the accused used to promise investors 1 percent profit on the money invested every working day, which was completely impractical. The scheme was presented as investment in cryptocurrency and other businesses, whereas in reality it was a pyramid/money circulation scheme. On adding new investors, the lure of 10 percent binary commission was also given. ED says that this scheme was paying old investors with the money received from new investors. As soon as new investors stopped coming, the scheme collapsed and people did not get their money back.
ED, Kochi Zonal Office has provisionally attached movable and immovable properties worth Rs. 3.78 Crore derived out of equivalent to the Proceeds of Crime generated by various persons namely Muhammed Faisal, Abu Sufiyan and their associates, who were involved in running a Ponzi pic.twitter.com/HyhKIG3b1I
— ED (@dir_ed) December 19, 2025
Recovery in cash, money laundering from shell companies
The investigation also revealed that the money was mostly taken in cash so that it could be avoided by the agencies. This money was then routed through shell companies like M/s Princess Gold and Diamonds LLP and M/s Toll Deal Ventures LLP and properties were purchased. In this case, ED had earlier raided 5 locations on June 4, 2025. A diary containing records of cash transactions, investors’ information, financial documents and digital devices were recovered from there.
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